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S <br /> Development Services Department Memorandum <br /> # 10-73 <br /> August 30, 2010 <br /> TO: Honorable Mayor Michael T. McElroy and City Council members <br /> FROM: Ryan P. McCrady, City Manager <br /> Greg C. Crowe, Assistant City Manager of Development Services <br /> Richelle D. Irons, Director of Neighborhood Services <br /> Vickie J. Buckingham,Neighborhood Programs Manager <br /> SUBJECT: Agreement with Lending Institutions for the "HOME" Buyer pown Payment <br /> Assistance Program <br /> RECOMMENDATION: <br /> Staff recommends approval of the attached resolution authorizing the City to enter into agreements <br /> with local lending institutions to implement the Decatur "HOME" Buyer pown Payment Assistance <br /> Program. The program provides up $10,000 in down payment assistance for low/moderate income <br /> first-time homebuyers. <br /> BACKGROUND: <br /> Since the early 1990's, the City of Decatur has used a portion of its federal HOME entitlement funds to <br /> provide a low interest loan program for first-time homebuyers in cooperation with local lenders. The <br /> Neighborhood Outreach Division continually assesses the needs of the community and the <br /> effectiveness of the federally funded programs designed to meet the community needs. Affordable <br /> home ownership continues to challenge the low/moderate income home buyer. The new "HOME" <br /> Buyer Program will provide assistance in the form a second mortgage with a zero per cent deferred <br /> forgivable loan. The new homeowner will be required to occupy the home for a period not less than <br /> five years and to annually certify occupancy. First mortgages will be obtained through local lending <br /> institutions which agree to promote and participate in the program. Currently, five local lenders <br /> (Citizens Equity First Credit Union aka CEFCU, Hickory Point Bank, Busey Bank, Land of Lincoln <br /> Credit Union, and Soy Capital Bank) have agreed to participate in the program. A copy of the <br /> Agreement between the City and the Financial Institutions is attached. <br /> POTENTIAL OBJECTIONS: None known. <br /> INPUT FROM OTHER SOURCES: <br /> Neighborhood Outreach Division, HOME regulations and guidelines. <br /> STAFF REFERENCE: <br /> If City Council members have questions, they may contact Richelle D. Irons at 424-2864 or e-mail at <br /> rirons@decaturil.gov. <br /> BUDGET/TIME IMPLICATIONS: <br /> The program may commence upon City Council approval of the Agreement. <br />